A Landmark Move for Egypt’s Fintech Scene
Egypt’s startup ecosystem just scored a major win! Catalyst Partners Middle East (CPME) has officially acquired digital lending startup Qardy for $23 million, marking Egypt’s first-ever fintech SPAC merger.
The deal, which was completed via a share swap, aligns with CPME’s strategic plan to strengthen its presence in the digital lending sector and support financial inclusion across the country.
What’s a SPAC?
A Special Purpose Acquisition Company (SPAC) is a company formed to raise capital through an IPO and then acquire or merge with an existing company—usually a promising startup. It’s a quicker way for companies to go public and raise funding compared to traditional IPOs.
Qardy’s acquisition follows in the footsteps of Swvl, the Egypt-born mobility startup that made headlines in 2022 by going public via a SPAC merger with Queen’s Gambit Growth Capital, becoming the first African startup to list on Nasdaq this way.
Why This Deal Matters
The acquisition of Qardy sets a major precedent in Egypt’s fintech space. It reflects a shift toward alternative financing and capital markets innovation.
- ✅ Deal Value: $23 million
- ✅ Structure: Share swap through SPAC
- ✅ Acquirer: Catalyst Partners Middle East (CPME)
- ✅ Target: Qardy, a fintech platform focused on lending to MSMEs
- ✅ Founded: Qardy was launched in 2022
Qardy provides tailored lending solutions for micro, small, and medium enterprises (MSMEs)—a segment often underserved by traditional banks. By combining digital tools and data-driven decision-making, Qardy is filling an essential gap in Egypt’s financial ecosystem.
FRA’s Role in Enabling Fintech Innovation
Egypt’s Financial Regulatory Authority (FRA) has been instrumental in making deals like this possible. By introducing a clear regulatory framework for SPACs, the FRA has created fertile ground for innovation in sectors like fintech and non-banking financial services.
This framework is going to:
- ✅ Enable new financing models
- ✅ Support fast-growing startups
- ✅ Attract local and global investors
- ✅ Provide legal clarity for emerging markets
A Regional Ripple Effect?
The successful CPME-Qardy deal is more than just a win for two companies. It’s a major signal to investors, founders, and policymakers across the Middle East and North Africa (MENA). The partnership clearly shows that Egypt is ready for the next stage of startup and capital market evolution.
“This deal shows that Egypt is serious about supporting fintech innovation and opening up to global financing tools,” one regional investor noted.
With the FRA’s backing, a growing number of startups, and a surge in investor interest, Egypt is on the path to becoming a regional hub for SPAC activity and digital financial services.